MEASURING FARM EFFICIENCY OVER TIME ON PHILIPPINE RICE FARMS

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Abstract
This paper measures farm‐specific technical efficiencies of rice farms in Central Luzon, the Philippines, at discrete points in time. Stochastic frontier production functions are estimated from the International Rice Research Institute's Loop Survey for the years 1970, 1974, 1979 and 1982. From the results, a measure of relative technical efficiency is calculated for each farm for each year. The four distributions of technical efficiencies are examined. Results show that technical inefficiency is the major reason for deviation from the frontier production function. All four samples show a large range of inefficiency but in general efficiency has improved, particularly between 1979 and 1982.